forintek canada corp. bc wood specialties group and forintek canada the specialty wood products...

ForintekCanada Corp.

BC Wood Specialties Group and Forintek CanadaBC Wood Specialties Group and Forintek Canada

The The Specialty Wood Products NetworkSpecialty Wood Products Network

Presentation to Island Coast Economic TrustPresentation to Island Coast Economic TrustNovember 17th, 2006November 17th, 2006

Bill Downing, CEO, BC WoodBill Downing, CEO, BC Wood

BC Wood Specialties Group

Specialty Wood Products Industry

A Company Perspective – Cedarland

Specialty Wood Products Network

Community Participation


AgendaAgenda


BC Wood Specialties GroupBC Wood Specialties Group

Established in 1989, BC Wood is a not-for-profit industry association of over 250 members, dedicated to growing BC’s value-added industry.

Our mission statement is:

To assist BC’s secondary wood product manufacturers to grow faster by helping them access and exploit markets that they would not otherwise enter. By doing this BC Wood will maximize the dollar value of BC fibre and minimize the business risk by diversifying our members’ market activities.


BC Wood Specialties GroupBC Wood Specialties Group

Identify:

BC Wood uses the experience of BC-based and in-market staff and member firms, along with the most recent market research, to Identify specific opportunities.

Connect:

Connect BC manufacturers of value-added wood products with buyers - tradeshows, trade missions, seminars, WWIS, Global Buyers Mission

Engage:

Assistance with logistics such as overcoming barriers (e.g. language, cultural and regulatory issues), marketing material, following up on leads and finding distributors and/or agents


Specialty Wood Products IndustrySpecialty Wood Products Industry

Remanufactured Products Lumber specialtiesCustom processingCutstockDecking

Sawmill specialtiesFencingSidingBoxes, bins and crates

Engineered Wood Products Laminated beamsTrussesPanel boards

Treated woodLaminated veneer lumber

Millwork DoorsWindowsMouldingFlooring

Architectural woodworkTurned woodStairs

Cabinets Kitchen cabinetsVanity cabinets

Cabinets doorsCountertops

Furniture HouseholdRTA

Commercial & InstitutionalPatio

Pre-Built Homes Pre-fab buildings

Log Homes and Timber Frame Log homesPost & Beam

Timber frame homes

Industry Product Sector


Other Appearance Products, $0.4 BN

Cabinets, $0.4 BN

Wood Furniture, $0.7 BN

Other Value Added Wood,

$0.4 BN

Millwork, $1.2 BN

Structural EWP, $0.1 BN

OSB, Plywood, Veneer, $2.2 BN

Lumber, $9.1

Shipment Value 2004

Total: $14.5 BNSource: Woodbridge Associates


Value-added industry on

Vancouver Island represents

approximately 1,330 jobs and $269

million in sales/revenue

Opportunity:The BC government has recognized that secondary manufacturing has the potential to play an increasingly significant role in maintaining the competitiveness of British Columbia’s wood products industry.

Growing the Value Added Industry in British Columbia - Strategic Directions – BC Ministry of Forests 2005




Significant Potential

Source: Woodbridge Associates


“volume to value”“economic zoning”“outsourcing”“optimizing the value-chain”“clustering”“revised tenure system”“tax incentives”



Entrepreneur:

“An individual who organizes production, bears the associated risks, and reaps any resultant profits”



New Product SalesOpportunity

New Process Lower CostsOpportunity


Timber Resource

Log Sorting & Merchandising &

Exporting & Custom Cutting

Primary Lumber

Manufacturing

Secondary Specialty

Wood Products

Manufacturing

Customers

Traditional Supply Driven

“PUSH”

Commodity Lumber Flow

SWPD Demand Driven “PULL”

Specialty

Wood Products Flow

☺SWPN Concept

SPECIALTY WOOD PRODUCTS NETWORK

Commodity Flow

$ Margin Add

Best Fit Use

Specialty Wood

Products


Cedarland Forest ProductsCedarland Forest Products



Genesis of a new product!

2001 - New distributor in UK/Ireland2003 - Met with architect in Ireland2004 - Mexican buyer2004 - Sample panels shipped to Europe

- Tradeshows in Ireland/UK- Demand is confirmed for an

commercial exterior panel



Product Development

• Product Specifications • Gluing• Coatings

• Protective• Fire

• Turn-key connector/fastener system



Production

• Investigated facilities in WA/OR/BC• Focused on BC because of multiple plants• Production split between Snowcap, Central Island Cedar and Canwood.• Difficult environment for quality control• Production now underway



Summary

• Huge investment for a small company

• Only possible because Cedarland had the

resources (time, capital and RM).

• But the story is not over - needs help with

training, more capital and marketing


Specialty Wood Products NetworkSpecialty Wood Products Network

•Marketing and Market Intelligence

•Product Development

•Innovative technology application

•Access to skilled people (Operational and Management)

•Business planning and entrepreneurial management

•Access to capital

•Access to raw material


The Specialty Wood Products NetworkThe Specialty Wood Products Network

Opportunity SalesProduct

•Market Intelligence •Product Development

•Production Technology

•Skills Training

•Raw Material

•Market Development

•Market Access

Capital and Business Planning


Current Approach

• BC Wood Specialties Group delivers the

marketing programs.

• Forintek Canada delivers the technology

transfer and product development program



New Approach• BC Wood Specialties Group and Forintek Canada

propose to join forces (leverage strengths and

resources) to create a new platform that better services

the secondary wood products sectors in BC.

• SWP Network will act as a single point of service delivery

(contact) for BC manufacturers.



Direct Delivery by SWP Network- Market Development, Market Access and Market

Intelligence Services- Technology Transfer:

Implementation and Process Improvement- Product Development- Raw Material Sourcing

Sub-Contracted Delivery- Skills Development- Business Planning - Capital Sourcing

The Specialty Wood Products Network


Industry

Marketing

Prod. Dev

Tech Transfer

Raw Material Sourcing

Training Business Planning Capital

The Specialty Wood Products Network


SWP Network - Structure and GovernanceSWP Network - Structure and Governance

SWP Network Board of Directors

Japan

China

United States

EuropeanUnion

Korea

Marketing Advisor

Marketing Advisor

Marketing Advisor

Marketing Advisor

Marketing Advisor

Marketing Advisor

Marketing Advisor

Technology Advisor

Technology Advisor

Technology Advisor

Technology Advisor

Technology Advisor

Technology Advisor

Technology Advisor

Advisory Committee

Advisory Committee

Advisory Committee

Advisory Committee

Advisory Committee

Advisory Committee

Advisory Committee

Finance

Admin

Marcom

Technology In-Market

Staff F&AMarketing

Raw Material

Raw Materials Advisor



Raw Material Advisor




Sector

Reman

EWP

Millwork

LHTF

Pre-Fab

Furniture

CabinetNote: Some advisors will

service multiple sectors.


• Fund an advisor on Vancouver Island

• Access to capital and HR.

• Infrastructure - build with wood and create a

local market!

Community ParticipationCommunity Participation



… “The impact of traditional comparative factors such as labour costs, interest rates, exchange rates, security of raw material supply, physical infrastructure, distance to market and economies of scale are inescapable, and some other regions of the world may have an advantage over BC in various combination of these factors. However, studies have shown that qualitative aspects such as management capability, entrepreneurial orientation, market knowledge, work force skills, innovation and adoption of new technologies are often what determine successful performance”.

Shultz and Gorley (2006)


Thank You

forintek canada corp. bc wood specialties group and forintek canada the specialty wood products...

Documents

bc wood slide

marketing slide

agenda slide

underway slide

salesrevenue slide

bc government

experience of bc

raw material slide